A decade ago, manufacturers based their supplier selection criteria mainly on parameters such as the price, flavor, or the supplier’s location. However, with the government’s and industries’ emphasis on stronger quality and safety of food products, selecting the right suppliers has become a critical and complex decision for the manufacturers to make.Supplier selection based on the quality of ingredients may involve some initial cost for business. However, it will pay off over time. Here are a few steps that will help you avoid mistakes while undertaking supplier selection:
Identify Supplier Options
Before setting up a supplier selection strategy, gather opinions from various stakeholders such as members from research and development, marketing, purchasing, quality assurance, etc. An open and transparent communication strategy about the material specifications should be established with the suppliers. Apart from the cost, other factors such as delivery commitments, reliability, responsiveness and customer service of the suppliers should be evaluated.
Measure Supply Performance Before Supplier selection
This is an essential step in supplier selection. Businesses should conduct an audit and assessment program before signing the contract with a supplier to ensure that the supplier does not have any significant compliance or quality system failures that would ultimately affect the manufacturer’s production capabilities. This audit must be undertaken from time to time, even after the contracts have been signed after supplier selection.
Ask the Supplier for Feedback
A self-assessment questionnaire is a tool to attain supplier feedback. It is useful in identifying performance gaps and to discover how suppliers understand their operations. In addition to these assessments and audits, it is also beneficial to monitor various informative metrics that add value to the business such as documentation errors, perfect shipments, rejected lots, gaps in supplier selection, etc.
Gain a Certified Status
A certified status is attained when both the parties receive a positive performance, and the supplier-manufacturer relationship grows stronger. Sustained successful performance is the key to attaining a certified status.
Develop a Partnership
Strategic partnerships facilitate better supplier/manufacturer relationships and ensure the production of high-quality products. Strategic partnerships help to attain the best quality products at the desired prices as there is a better understanding between manufacturers and suppliers.
Satisfied Customers Should Be the Goal
Selecting suppliers should be ultimately based on providing the best quality products at affordable prices, which results in satisfied and loyal customers. Suppliers who understand this need and act accordingly will be the most beneficial for business.